Mnuchin says Trump could ease Huawei restrictions

US Treasury Secretary Steven Mnuchin has signalled that Donald Trump might ease restrictions on Huawei if progress is made in the trade battle with China.

Mnuchin said on Sunday: “I think what the president is saying is, if we move forward on trade, that perhaps he’ll be willing to do certain things on Huawei if he gets comfort from China on that and certain guarantees.”

However, as he spoke at a G20 finance ministers meeting in Fukuoka, Japan, Mnuchin added that without a deal, Trump will maintain tariffs to cut its deficit. He explained: “If China doesn’t want to move forward, then President Trump is perfectly happy to move forward with tariffs to rebalance the relationship.”

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With the standoff continuing between Washington and Beijing over trade, the US has accused the Chinese telecommunications giant Huawei of spying and stealing intellectual property. The company strongly denies the claims.

Nevertheless, Trump has blacklisted Huawei, effectively banning US firms from doing business with it. Moreover, hw has also pressured allies to follow suit, with reports that he planned to tell Theresa May he might limit US intelligence sharing with the UK if Britain allows Huawei to be a part of the country's 5G network.

However, despite predictions of major fireworks over the issue during Trump’s recent visit to the UK, the US President was “all smiles and warm words” over the issue, according to Sky News.

Asked at a joint press conference with Theresa May whether he would limit intelligence sharing, Trump said: “No, because we are going to have absolutely an agreement on Huawei and everything else... we have an incredible intelligence relationship and we will be able to work out any differences.”

Meanwhile, the trade tensions between the US and China continue. Trump has imposed and then tightened import tariffs on Chinese goods in a bid to reduce America’s trade deficit and combat what he describes as unfair trade practices.